Selling Tesla shares amid decline in market optimism

Tesla Inc. (TSLA) stock continue to decline, remaining within a downtrend. By March 10, their price fell by 7.72% to reach $221.35 per share. Since its peak on December 18, 2024, the stock has fallen an impressive 45%. The last seven weeks were extremely difficult for TSLA, starting with the moment when Elon Musk visited Washington and spoke with Donald Trump.

Amid the disappointing dynamics, Wall Street analysts adjusted their forecasts for Tesla. Bank of America, Baird, UBS and Goldman Sachs lowered their target prices for the company's shares. Experts believe that 2025 will be a period of serious challenges for the electric car maker due to a slowdown in sales. No new car models are expected anytime soon, and vehicle registration data indicates a decline in consumer interest, which increases concerns about future demand.

Tesla's difficulties are compounded by trade conflicts that put pressure on global supply chains. The company strongly depends on rare earth metals, electronics and chips purchased abroad. Imposition of trade restrictions increases production costs and, in general, makes the US market less attractive for international investors. These factors also have a negative impact on share prices.

A technical picture confirms the current trend. The MACD indicator signals the continuation of the downward movement: after a temporary convergence of the lines, the gap between the main and signal lines increased again, which shows the lack of strength of buyers to change the situation. The RSI index is in the oversold zone, but this does not prevent the bears from dominating the market, increasing pressure on the price. Nevertheless, the stochastic oscillator also hints at the possibility of correction: its lines are in the oversold zone, which may indicate the current undervaluation of the asset and the potential for a short-term price recovery.

Current Recommendation:

Sell TSLA at the current price. Take profit – 160. Stop loss – 260.